Key takeaways

Australia and the European Union have concluded negotiations on a free trade agreement (Australia-EU Free Trade Agreement, or A-EU FTA). Under the agreement, Australia will establish a domestic geographical indication (GI) registration system.

Under the A-EU FTA, Australia will extend protection to 396 EU agricultural products with GIs, comprising 231 spirit GIs and 165 GIs for other agricultural products. Exceptions and transition periods are provided for a small number of commonly used GIs of significant commercial value.

The A-EU FTA is expected to officially enter into force in 2027. The two parties have also concluded negotiations on a new Wine Agreement (which is yet to be approved and enter into force) as a side document to the A-EU FTA. This agreement establishes a new GI system and eliminates tariffs on wine, which is expected to lower the financial and administrative hurdles faced by Australian producers exporting wine to the EU.

Actions for businesses

Businesses should review the list of GIs to be protected and assess the impact of the relevant provisions on their products and business operations.

Producers currently using relevant GIs should verify whether they qualify for exceptions and adjust their business strategy in advance to ensure compliant operations once the FTA comes into force.

Wine producers should read and familiarize themselves with this new Wine Agreement and the changes it brings, including adjustments to residual sugar limits for sparkling wine.

Australia and the EU concluded negotiations on the terms of the A-EU FTA on 24 March 2026. This agreement, which follows eight years of negotiations, will govern future bilateral trade between the two parties; in 2025, total bilateral trade exceeded €80 billion.

Exports of goods and services between the two major economies show an imbalanced pattern, with EU exports roughly triple those of Australia: for goods trade, EU exports to Australia were €28 billion and Australian exports to the EU were €10.7 billion; for services trade, EU services exports to Australia were €31 billion in 2024, and Australian services exports to the EU were €11 billion.

Relying on the A-EU FTA, tariffs will be significantly reduced when EU and Australian businesses export goods to each other's markets. A key condition for achieving the agreement was Australia's consent to establish a brand-new GI system that will recognize 396 EU GIs, which forms the main content of this update.

What is a Geographical Indication?

A geographical indication is a special sign used to identify a product as originating in a specific territory, region, or locality, where a given quality or characteristic of the product is attributable to that geographic origin. For example, "Champagne" is a GI referring to sparkling wine originating from the Champagne region of France, produced using specific grape varieties grown within a defined geographical area and manufactured according to traditional methods—namely, undergoing secondary fermentation after bottling.

Australia's GI system will prohibit domestic producers from using EU-origin GIs on their products, subject only to the limited exceptions and transitional arrangements described below.

Australia's new approach to Geographical Indications

Australia's new GI system will be administered by IP Australia. This agency is currently responsible for administering the registration of other intellectual property rights such as trade marks, patents, and designs.

Australia currently protects certain local and international GIs through various avenues:

1. Wine GIs are entered into the Register of Protected Geographical Indications and Other Terms pursuant to the Wine Australia Regulations 2018 (Cth) / Wine Australia Act 2013 (Cth), administered by Wine Australia;

2. Wine and other goods can be protected as certification trade marks under the Trade Marks Act 1995. Australia currently has 613 registered certification trade marks for goods and services, 51 of which are registered under "alcoholic beverages" or "spirits" classes.

3. GIs can also be protected through other indirect avenues: under common law rules governing passing off, or under consumer protection legislation (prohibiting misleading, deceptive, or likely-to-mislead conduct in trade or commerce). Even if a sign is not registered as a certification trade mark, businesses can protect and regulate the use of signs with certification functions through standard registered trade marks combined with licensing schemes.

IP Australia prefers to build and supervise this new system by amending the Trade Marks Act 1995, rather than introducing standalone specialized legislation.

In addition to protecting the 396 EU GIs specified in the A-EU FTA, the new GI framework can also be used to protect domestic Australian GIs as well as overseas GIs, including new GIs originating from the EU. The FTA also contains a provision allowing both parties to seek protection for new GIs in each other's markets, thereby enabling protected Australian-origin GIs to secure protection in the EU.

List of EU GIs to be protected

The 396 EU GIs listed in the A-EU FTA that are to be protected include 231 spirit products and 165 agricultural products, covering certain bread and pastry products, fresh meat, fruit, vegetables, and cereals. The full list of protected terms can be viewed on the Department of Foreign Affairs and Trade (DFAT) website.

The scope of prohibition against using registered (i.e., protected) GIs will extend to:

1. Translations or transliterations that retain the original meaning of the GI;

2. Use of the GI as a style descriptor, for example accompanied by words such as "kind", "type", "imitation", etc.;

3. Use of the GI while indicating the true origin of the goods.

The agreement sets out three important exception mechanisms designed to allow (i) continued use, (ii) protection of vested rights, and (iii) transition periods:

1. Continued use: A small number of GIs are permitted to continue to be used provided they are not misleading, including Parmesan, Prosecco, Kransky, Parmigiano Reggiano, and Kranjska klobasa;

2. Vested rights protection (Grandfathering clause): Producers who can demonstrate prior use (i.e., continuous good-faith use on relevant goods for at least 5 years prior to the entry into force of the A-EU FTA) may continue to use the following terms under specific goods items: Bavarian, Feta, Finocchiona, Grain jenever, Grappa, Gruyere, Bologna, Munich, Nurnberger Bratwurste, Romano, and Tiroler;

3. Transitional arrangements: The following names may continue to be used within a limited transition period:

Terms: Fontina, Munster, Sherry vinegar, Slavonski, Szedgedi, Romano; Transition period: 5 years.

Terms: Ouzo, Tsipouro; Transition period: 7 years.

Terms: Prosecco for export; Transition period: 10 years.

The Italian GI product Parmigiano Reggiano will be protected, but the term "Parmesan" may continue to be used. The same rules apply to the Italian GI Pecorino Romano and "Romano", while the term "Pecorino" remains permitted for continued use. Domestically produced Australian wine may still use the Italian GI product name "Prosecco", and vested rights protection applies to this name for Australian wine exports. Australian producers may still use the Greek GI "Kalamata" on olive oil products, provided that such use is not misleading as to the origin of the olive oil. Similar specific exception clauses also apply to "Kransky", "Black Forest Ham", and "Csabai".

Furthermore, even where relevant GIs receive protection, existing registered trade marks containing GI terms may continue to be used and such registrations may be renewed.

New Wine Agreement

The two sides have also concluded negotiations on the proposed new Australia–EU Wine Agreement (referred to as the Wine Agreement), which is a side document to the A-EU FTA. The EU is one of Australia's most important wine export markets, with Australian wine exports to the EU reaching A$159.3 million in 2025.

Under the Wine Agreement, the EU has agreed to simplify access requirements for Australian wine exporters into the EU, including certain testing and certification regulations. These changes are expected to expand opportunities for Australian producers to enter the European market. In return, Australia has agreed to adopt the EU's maximum residual sugar limits for sparkling wine, to be phased in over 5 years from the date the Wine Agreement enters into force. Australia has also committed to protecting new and amended EU GIs and traditional terms. The consensus reached by both parties in the Wine Agreement regarding geographical indications on wine labels is an extension and expression of the aforementioned A-EU FTA consensus, including the provisions on Prosecco.

The Australian Parliament is expected to consider the A-EU FTA and the Wine Agreement concurrently, with both documents anticipated to complete ratification procedures and officially enter into force in 2027.